Thermo Fisher Scientific (TMO) Stock Analysis
This is a peer-relative look at Thermo Fisher Scientific (TMO): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Pharmaceuticals, Biotechnology & Life Sciences peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | TMO |
|---|---|
| Name | Thermo Fisher Scientific Inc. |
| Country/Region | United States |
| GICS Sector | Health Care |
| GICS Industry Group | Pharmaceuticals, Biotechnology & Life Sciences |
| GICS Industry | Life Sciences Tools & Services |
| GICS Sub-Industry | Life Sciences Tools & Services |
| Market Capitalization | 232.67 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | March 17, 1980 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: TMO | Industry group median |
|---|---|---|
| Total Return (1Y) | 30.55% | 48.04% |
| Total Return (3Y, Annualized) | 6.08% | 14.28% |
| Total Return (5Y, Annualized) | 2.83% | -3.19% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: TMO | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 30.60% | 68.41% |
| Beta (5Y) | 0.86 | 0.94 |
| Max Drawdown (5Y) | -40.95% | -82.67% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: TMO | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 0.87 | 0.86 |
| Sortino Ratio (1Y) | 1.41 | 1.43 |
Profitability
ROE (TTM)
Thermo Fisher Scientific (TMO) posts ROE of 13.52%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.
TMO
Pharmaceuticals, Biotechnology & Life Sciences industry group
13.52%
Group distribution
- Max
- 102.29%
- TMO
- 13.52%
- Q3
- 3.11%
- Median
- -33.05%
- Q1
- -64.06%
- Min
- -157.61%
Largest peers
- LLY
- 102.29%
- NVS
- 30.35%
- JNJ
- 25.74%
- AZN
- 21.97%
- TMO
- 13.52%
- MRK
- 6.96%
- ABBV
- --
Net Margin (TTM)
Thermo Fisher Scientific (TMO) keeps 15.04% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.
TMO
Pharmaceuticals, Biotechnology & Life Sciences industry group
15.04%
Group distribution
- TMO
- 15.04%
- Max
- 12.02%
- Q3
- 2.01%
- Median
- 0.00%
- Q1
- -5.21%
- Min
- -13.51%
Largest peers
- LLY
- 33.53%
- NVS
- 22.50%
- JNJ
- 21.48%
- AZN
- 17.02%
- TMO
- 15.04%
- ABBV
- 9.80%
- MRK
- 4.77%
Operating Margin (TTM)
Thermo Fisher Scientific (TMO) turns 18.75% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
TMO
Pharmaceuticals, Biotechnology & Life Sciences industry group
18.75%
Group distribution
- Max
- 76.04%
- TMO
- 18.75%
- Q3
- 9.50%
- Median
- 0.00%
- Q1
- -121.15%
- Min
- -308.66%
Largest peers
- LLY
- 54.22%
- ABBV
- 40.04%
- NVS
- 34.62%
- JNJ
- 29.19%
- AZN
- 23.46%
- TMO
- 18.75%
- MRK
- -0.24%
Profitability Metrics
| Metric | Current stock: TMO | Industry group median |
|---|---|---|
| ROE (TTM) | 13.52% | -33.05% |
| ROA (TTM) | 5.13% | -15.68% |
| Net Margin (TTM) | 15.04% | 0.00% |
| Operating Margin (TTM) | 18.75% | 0.00% |
| Gross Margin (TTM) | 40.99% | 31.13% |
Growth
Revenue Growth
Thermo Fisher Scientific (TMO) grew revenue 3.91%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.
EPS Growth
Thermo Fisher Scientific (TMO) grew earnings per share 7.32%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.
Growth Metrics
| Metric | Current stock: TMO | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 3.91% | 11.46% |
| Revenue Growth (3Y CAGR) | -0.27% | 11.21% |
| EPS Growth (YoY) | 7.32% | 2.87% |
| EPS Growth (3Y CAGR) | 0.21% | 3.06% |
Financial Strength
Current Ratio (MRQ)
Thermo Fisher Scientific (TMO) has current ratio of 1.55, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.
TMO
Pharmaceuticals, Biotechnology & Life Sciences industry group
1.55
Group distribution
- Max
- 26.78
- Q3
- 12.59
- Median
- 5.76
- Q1
- 2.84
- TMO
- 1.55
- Min
- 0.10
Largest peers
- TMO
- 1.55
- LLY
- 1.36
- MRK
- 1.32
- JNJ
- 1.09
- AZN
- 0.89
- NVS
- 0.86
- ABBV
- 0.81
Debt / Equity (MRQ)
Thermo Fisher Scientific (TMO) has debt-to-equity ratio of 0.81, in the higher-leverage quartile for its industry. The heavier reliance on borrowing can make earnings, rates, or refinancing conditions matter more.
TMO
Pharmaceuticals, Biotechnology & Life Sciences industry group
0.81
Group distribution
- Max
- 1.38
- TMO
- 0.81
- Q3
- 0.63
- Median
- 0.13
- Q1
- 0.02
- Min
- 0.00
Largest peers
- LLY
- 1.62
- MRK
- 1.28
- NVS
- 1.17
- TMO
- 0.81
- AZN
- 0.64
- JNJ
- 0.58
- ABBV
- --
Financial Strength Metrics
| Metric | Current stock: TMO | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.55 | 5.76 |
| Debt / Equity (MRQ) | 0.81 | 0.13 |
| Net Debt / EBITDA | 3.28 | 1.12 |
Dividends
Dividend Yield (TTM)
Thermo Fisher Scientific (TMO) has dividend yield of 0.29%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.
TMO
Pharmaceuticals, Biotechnology & Life Sciences industry group
0.29%
Group distribution
- TMO
- 0.29%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- NVS
- 2.99%
- ABBV
- 2.61%
- MRK
- 2.23%
- AZN
- 1.96%
- JNJ
- 1.96%
- LLY
- 0.52%
- TMO
- 0.29%
Dividend Payout Ratio (TTM)
Thermo Fisher Scientific (TMO) has payout ratio of 9.69%, above the peer distribution for its industry. The dividend consumes more reported earnings than peers normally do, leaving unusually thin earnings cover.
TMO
Pharmaceuticals, Biotechnology & Life Sciences industry group
9.69%
Group distribution
- TMO
- 9.69%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- MRK
- 268.80%
- ABBV
- 190.40%
- NVS
- 71.60%
- JNJ
- 60.79%
- AZN
- 47.41%
- LLY
- 21.69%
- TMO
- 9.69%
Dividend Metrics
| Metric | Current stock: TMO | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.29% | 0.00% |
| Dividend Payout Ratio (TTM) | 9.69% | 0.00% |
Valuation
P/E Ratio (TTM)
Thermo Fisher Scientific (TMO) trades at P/E ratio of 33.90, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
TMO
Pharmaceuticals, Biotechnology & Life Sciences industry group
33.90
Group distribution
- Max
- 84.64
- Q3
- 44.87
- TMO
- 33.90
- Median
- 27.73
- Q1
- 16.02
- Min
- 0.13
Largest peers
- MRK
- 122.04
- ABBV
- 74.64
- LLY
- 42.20
- TMO
- 33.90
- JNJ
- 31.35
- AZN
- 24.88
- NVS
- 24.00
P/S Ratio (TTM)
Thermo Fisher Scientific (TMO) trades at 5.02 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.
TMO
Pharmaceuticals, Biotechnology & Life Sciences industry group
5.02
Group distribution
- Max
- 75.52
- Q3
- 33.02
- Median
- 7.47
- TMO
- 5.02
- Q1
- 3.59
- Min
- 0.01
Largest peers
- LLY
- 14.05
- ABBV
- 7.27
- JNJ
- 6.65
- MRK
- 5.65
- NVS
- 5.33
- TMO
- 5.02
- AZN
- 4.19
P/B Ratio (MRQ)
Thermo Fisher Scientific (TMO) trades at 4.42 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.
TMO
Pharmaceuticals, Biotechnology & Life Sciences industry group
4.42
Group distribution
- Max
- 15.44
- Q3
- 7.74
- TMO
- 4.42
- Median
- 4.00
- Q1
- 1.86
- Min
- -6.35
Largest peers
- LLY
- 33.04
- MRK
- 8.98
- JNJ
- 7.66
- NVS
- 7.27
- AZN
- 5.12
- TMO
- 4.42
- ABBV
- -78.88
Valuation Metrics
| Metric | Current stock: TMO | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 33.90 | 27.73 |
| P/S Ratio (TTM) | 5.02 | 7.47 |
| P/B Ratio (MRQ) | 4.42 | 4.00 |
| Free Cash Flow Yield (TTM) | 2.68% | -1.75% |